The auditor-general's report tabled in Parliament said a trust fund used by Cr Pisasale could not demonstrate it had properly recorded all revenue from donations.

It also raised broader concerns about contracting and procurement practices at Ipswich City Council.

The report found 11 significant issues with the Ipswich council over the last six financial years.

It said the council allowed high increases in the cost of contracts, paid for work without documentary evidence it had been completed, overpaid GST, and had not complied with its own procurement policy.

Last year, the Ipswich City Council said four staff resigned over allegations about irregularities, while another two were given final warnings.

A response by Ipswich Council CEO Jim Lindsay was provided to the attorney general for his report. In part it read:

"Council believe these matters had been significantly addressed and satisfied the Audit outcomes for the 30 June 2014 report, with no mention in the final Audit report for the year.

"Council would like to highlight that on the overall assessment of Council's control environment and financial performance, Ipswich City Council received a green indicator across all other criteria compared to its grouped Councils.

"This is a significant result and shows a very sound performance in all areas of Council."